A third of respondents are not saving

More than one-third (35%) of respondents do not contribute to any kind of savings vehicle, according to research by Now: Pensions.

The research, which was carried out through an online survey of 2,033 UK adults, found that one in four (27%) respondents said they will face a shortfall in their pensions savings.

The research also found:

47% said they realise that the onus falls on them when it comes to ensuring that they have sufficient income in retirement, while 15% still believed the state will fund their retirement.

41% said they expect to take a part-time job in retirement to make up for the shortfall of their savings.

31% of respondents said they do not plan to give up work entirely once they retire, with this figure rising to 41% for respondents over the age of 55.

20% said they do not expect to retire at all.

Morten Nilsson, chief executive officer at Now: Pensions, said: “With the current shortfall in pension savings, coupled with the fact that we are all living longer, there is a genuine risk that a large proportion of the population could face a poor future once they retire. Doing nothing is not an option anymore if people want to retire on a reasonable income.

“We are confident that the introduction of auto-enrolment will get people saving, some for the first time. We also hope that the new rules will dispel the live-now-save-later attitude, which is inherent in our society.”